With Tim Cook now firmly at the helm at Apple, Apple’s board of directors have made him an offer he can’t refuse. Specifically, MacRumors reports that Apple recently filed a form 8-K with the SEC as a result of the change in their executive leadership. 8-K’s must be filed anytime there is a material change or event at a company that that can be deemed to be of interest to investors.
As part of Apple’s disclosure to the SEC, the 8-K also states the following:
In connection with Mr. Cook’s appointment as Chief Executive Officer, the Board awarded Mr. Cook 1,000,000 restricted stock units. Fifty percent of the restricted stock units are scheduled to vest on each of August 24, 2016 and August 24, 2021, subject to Mr. Cook’s continued employment with Apple through each such date.
In the wake of Jobs’ resignation, Apple’s share price didn’t really change all that much aside from a huge drop in after-hours trading last Wednesday. But at the close of the final bell this Friday, Apple shares had shot up $9.86 and finished at $383.58.
Clearly, investors are confident in Cook’s ability to steer Apple. At Apple’s current stock price, the stock deal awarded to Cook checks in at $383 million.
Simply put, if Cook stays at Apple until 2016 he’ll receive 500,000 Apple shares and an additional 500,000 if he stays until 2011. John Gruber aptly sums things up when he says, “Apple’s board is confident in Tim Cook, and Tim Cook is confident in Apple.”
Last year, Cook’s total take home pay came in at $58 million, a figure which includes a $5 million bonus he received in March. It stands to reason that this passing of the torch from Jobs to Cook has been on the horizon for some time now and Cook’s compensation has been what it is to keep him on board in an era where tech executives routinely jump ship.
Of course, we don’t think Cook ever really contemplated leaving Apple. During a commencement speech he gave at Auburn in 2010, his alma mater, he explained that joining Apple was the best decision he ever made.
Regarding his first interview for the COO position with Steve Jobs back in 1998, Cook explained:
On that day, in early 1998, I listened to my intuition. Not the left side of my brain, or for that matter, even the people who knew me best. It’s hard to know why I listened. Im not even sure why I know today, but no more than 5 minutes into my initial interview with Steve, I wanted to throw caution and logic to the wind and join Apple. My intuition already knew that joining Apple was a once in a lifetime opportunity to work for the creative genius and to be on the executive team that could resurrect a great American company.
Apple is in good hands.